Why Small Businesses Fail at Cash Flow — and How QuickBooks Can Save You

You can be profitable on paper and still run out of money.

That’s the cash flow trap — and it’s one of the top reasons small businesses in Kenya shut down.

You sell, you invoice, you get paid… eventually. But in between, you’re struggling to pay bills, buy stock, or even pay yourself.

QuickBooks helps you break out of that cycle — by showing you exactly where your money is, where it’s stuck, and what to do next.

Why Cash Flow Kills Good Businesses

Here’s the hard truth:Most businesses don’t fail because of bad products or poor sales.They fail because of timing — money going out faster than it comes in.

Common traps include:

• Selling on credit but forgetting to follow up

• Spending before payments are received

• Forgetting about recurring bills

• Not knowing how much cash you actually have

And when you only realize it when your account hits zero — it’s already too late.

How QuickBooks Helps You Stay Cash Flow Positive

1. Live Cash Flow Overview: QuickBooks shows you your money in real time — not just what you’ve earned, but what’s actually available in your account today.

2. Track Receivables Automatically: You’ll see who owes you, how much, and how long it’s been overdue — all on your Dashboard.

3. Plan for Upcoming Bills: QuickBooks lets you schedule and view upcoming expenses so you’re never caught off guard.

4. See Where the Money Is Going: Expense reports show exactly what’s eating your cash — from high vendor bills to unnecessary spending.

5. Create Cash Flow Forecasts: Use historical data to estimate your income and expenses, and plan for tight months in advance.

   
   

A Small Logistics Firm in Thika

One of our clients ran a delivery business with steady sales — but they were always cash-strapped by mid-month.

The issue? Most clients paid 30–45 days after service. Meanwhile, fuel, salaries, and maintenance needed weekly cash.

We helped them use QuickBooks to:

• Track unpaid invoices daily

• Set reminders and follow up earlier

• Spot cash gaps and delay non-essential spending

• Build a 1-month emergency buffer from recovered debt

Now they’re still growing — but with fewer sleepless nights.

What to Watch in QuickBooks

• Unpaid Invoices: Quickly see which customers owe you money — so you can follow up early and keep cash flowing.

• Upcoming Bills: Know what payments are coming up — like rent, salaries, or supplier invoices — so you're never caught off guard.

• Top Expenses: Identify where most of your money is going. This helps you cut unnecessary spending and increase profits.

• Cash Flow Trends: Track how your cash is moving month to month. Spot tight seasons in advance and prepare for them early.

• Bank Balance vs. Expected Cash: Compare what’s actually in your account to what you thought you'd have — this keeps your plans realistic and grounded.

Don’t Let Cash Flow Take You Down

Cash flow issues don’t always look like emergencies — until they are.

QuickBooks helps you stay ahead of the problem by giving you clarity, structure, and control.

At Remotix, we:

• Set up your cash flow dashboard in QuickBooks

• Train you on spotting red flags before they hurt

• Help you build monthly reports to plan smarter

Ready to stop running out of money? Let’s get your cash flow under control.Email us at info@remotixkenya.com